Does Anyone Still Believe There Is No Recession?
Some excerpts:
• Not just GM (GM) and Ford (F), but mighty Toyota (TM) warns of lower 2008 vehicle sales
• JPMorgan CEO Jamie Dimon: (JPM) “Our expectation is for the economic environment to continue to be weak – and to likely get weaker – and for the capital markets to remain under stress…
• What about Apple (AAPL) -- they continue to do well? They have been -- but even the iPod/iPhone maker is expecting a consumer slowdown: Thinner profit margins, more discounting, diminished profitability through the rest of 2008 and into the following year.
• American Express (AXP): The credit card company said that even its most creditworthy, long-standing customers felt the effects of the economic slowdown that's currently sweeping the U.S. "With bad debt occurring even in the superprime card segment, AmEx's earnings clearly show that the credit crisis is going upscale, which does not bode well for the U.S. economy."
• We have Oil Prices falling -- the knee jerk response was optimism -- but that misses the big picture. Its not difficult to explain, it's merely cooling global demand courtesy of a US-induced global slowdown.
• UPS: Earnings fell 18.3% per share -- and that was after UPS issued a profit warning (June 23) -- its second in two quarters.
• Costco Warns on Profit As Inflation Clouds Outlook: COST was supposed to be one of the firms that was going to thrive on a recession.
• Caterpillar: Despite good overseas earnings, Caterpillar (CAT) CEO Jim Owens cited "softening'' in Japan and Western Europe. The U.S. may find it hard "to avoid a recession." CAT sees further employment declines, no sign of housing recovery, and expects non-residential building to soften further. North America will be its weakest region.
• Beige Book: Describes the economy as having 'slowed.'
• Pawn shops are booming
Home declined in June, number of available houses increased.
Apple: Economy Is Depressed
The Company’s operations and performance depend significantly on worldwide economic conditions and their impact on levels of consumer spending, which have recently deteriorated significantly in many countries and regions, including without limitation the United States, and may remain depressed for the foreseeable future.
